Auditors of public companies are required to evaluate the consistency of the financial statements,however,the auditors of private companies are not subject to such a requirement.

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Auditors of private companies are still required to evaluate the consistency of financial statements in accordance with generally accepted auditing standards. The difference lies in the fact that public companies are required by the Securities and Exchange Commission (SEC) to disclose all material changes in accounting principles, whereas private companies have more flexibility in changing their accounting policies. However, this does not exempt auditors of private companies from evaluating consistency.

Auditors of Public Companies Are Required to Evaluate the Consistency